Any idea on what I could be getting myself into?

There's a chance that I could join a boutique bank this summer. It's a small firm and I'd be working directly under senior bankers. From what I can tell, the firm does not have any analysts as the senior bankers (about 5 in total) do all the work.

Anyone worked in a similar environment, or has heard of someone who has? Any idea on whether I'd get the standard experience like modeling and copy and pasting info from 10-ks? Does it sound like a shop that does valuation (I ask this question because it's hard to fathom directors spending hours in front of a spreadsheet)? Any advice/insight would be simply awesome.

 

It would be more useful if you told us what bank it was.

Do they have an industry specialty? What size companies do they work with? What deals have they done?

If they are only 5 people, my bet is that they are either in a very specialized niche or they are working with very small companies (under $50mm). If they are working with very small companies, you will not get to do much valuation work or modeling.

 

Believe me, I want to disclose the name of the bank. Unfortunately, I can't - at least, not right now - until everything's finalized. (That said, PM me in a month from now if you are still curious. I can certainly let you know then.)

The bank serves on small-cap firms; it has a broad focus with deals ranging from media to energy. Looks like they do a lot of advisory, and some capital raising, too.

It looks like I may not get to do much valuation work or modeling - is this a red flag? Any thoughts interning at this shop? What can I do to maximize the experience?

 
Best Response

Yes. That's definitely a red flag. But consider both good and bad.

I had a similar dilemma this summer. I was given an offer to work at a boutique (no brand name whatsoever) that had just under 30ish people. There were no analysts - only associates and up. Which made me question, "Who on earth does the grunt work (valuation, pitchbook, etc.)?"

In my case, I would be given that grunt work responsibility since I have a bit (but not a lot) of experience.

Pros: 1. I would be able to work right under sr bankers 2. I would gain valuable experience in valuation, pitchbook work 3. I would gain exposure to deals because sr bankers would take me along to meetings (as difficult as this is to believe, this was part of perk in the offer) 4. Boutique specializes in industry that is very impacted, so I would get a lot of communication with buy-side groups since deals would mostly be distressed investments

Cons: 1. Boutique is very specialized in one industry - my experience is very good yet focused (not much marketability if you're trying to go to other industry or product groups/could definitely see this the other way too - you're only an intern and any experience is value added) 2. Boutique has no name/prestige - would anyone recognize this name on my resume? 3. Pay would not be as great because less resources (THIS CON SHOULD BE DEAD LAST SINCE ANY EXPERIENCE IS GOOD EXPERIENCE IF YOU'RE AN UNDERGRAD DESPERATE FOR A JOB)

 

Thanks for the insight. It's much appreciated.

You mentioned you got valuation experience, did that include modeling? When applying for SA/FT positions this year, what did the recruiters/ interviewers think about your experience with the boutique? At smaller shops, are senior bankers more chill and willing to share their knowledge and time with interns?

I'm not too concerned with the brand, since I'm new to the industry. Again, the team's really small - five people, all of whom are senior bankers. I have asked myself the same question, "So, who does the grunt work?" I guess I'll find out soon enough.

 

I apologize. I wasn't too clear on that comment. I was given an offer, but I declined. Personally, I thought the Con's outweighed the Pro's especially since I had another offer on the table.

Considering your situation that you're "new to the industry", I would recommend that you definitely take the gig to better position yourself for next summer. Any internship in a boutique ibank is priceless (paid or unpaid/valuation or no valuation responsibilities).

BB's are looking for kids who are already in the industry - kids who have gotten training from other players in the field so that when they train you, you're not as behind the learning curve/you're able to climb the learning curve at a relatively faster rate.

 

Thanks for confirming and congrats on landing the offer, leggo. It's reassuring to know there's still lots that can be gained from working at this bank. I'll work hard and make the most of this opportunity. Will definitely keep in touch.

 

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